A "host agency"
or "host travel agency" is a company that "hosts"
the businesses of their independent travel consultants.
An
easy way
to understand what a "host agency" or "host travel agency" does
is to compare it to ( because it's "similar"
to) a
"franchise chain":
The host agency would
be the
"franchisor"
and you (as a home based travel agent)
would be the "franchisee".
The
main
benefit (for YOU) to
join a Host Agency (as
opposed to being "completely independent") is that you get
immediate
access to:
a
complete business infrastructure (turn-key
solution)
travel
agency tools (reservation systems, etc.)
and
- VERY IMPORTANT: commission agreements/levels with travel
suppliers.
If
you were to start
a home based travel agency completely on your own, you'd have to spend
months to "set up your business" and perhaps years
to climb up
the commission ladder with your travel suppliers.
Therefore,
joining a
"host agency" saves you TONS of time and a lot of headaches.
In
addition, when
you establish a 'contract or agreement' with a host agency you can ( in
many cases ) sell travel
LEGALLY under
the host agency "master Seller
of Travellicense"(USA)
or
Provincial Registration (Canada).
In
some jurisdictions - such as
in
Ontario, Quebec
and British Columbia,
Canada - working in affiliation with a Host Agency is the ONLY
way to legally
act as a home-based
travel agent.
In
other words, if you live in one the above-mentioned provinces and you
want to sell travel and work as a travel agent you MUST:
Open
and register a retail travel agency
or
Join
a registered
travel agency as an Independent Contractor.
In
Ontario, Quebec and British
Columbia, home-based
travel agents ( also called "independent" or "outside" agents) MUST
have a written agreement with a travel agency that holds a
Provincial Registration.
Often,
the Travel
Industry
Council
of Ontario
(Canada) reports cases of individuals who are
convicted
for
"presenting themselves as travel agents or travel counselors"
WITHOUT the required Provincial registration.
Which Host Agency
should I
join?
I
guess I'm expected
to answer this question by saying: "I recommend such
and such
host agency"...
However,
here's the answer that's really
going to help YOU:
You must join a host
travel
agency whose business model, vision and goals are compatible with YOUR
goals and the type of home based travel agency business that YOU wish
to start.
For
example, if all
you wanted to do was to "sell a few trips every year" to your friends,
relatives and a few other personal contacts, then joining certain host
agencies would
NOT
be the right thing to do if they cater to individuals that wish to
build lucrative travel businesses (which requires a larger commitment
and a lot more dedication than if you want to start a "hobby".)
If all you
want to do is set up a travel
related web site, write about your favourite destination or adventures
and make a few extra bucks a month... you don't even need a host
agency. You can
start
a travel-related
online business (web site) WITHOUT becoming a travel agent
( You can can examples or 'cases
studies' of people who have done
that at
this
other page )
Remember,
which
host
agency YOU join should be determined by YOUR
goals.
Warning: Do your
homework. Keep your goals in front of you at all times as you
research different host agencies and different ways to start your home
based travel agency.
A good reason to do
your
homework is to avoid wasting money: Some
host agencies charge
as much as $16,000.00 to sign
you up as an 'independent
travel agent'. Doesn't it make sense to know your options
before you dish out $16,000.00 bucks and "trap" yourself into a
contract that might or might
not work for you?
On
the other hand
, beware of those host agencies that charge "nothing"
to sign
you up. In this case ask yourself: Would McDonalds or
Starbucks or Tim Horton's be able to offer their amazing training and
advertising resources to their 'franchisees' if
they charged zero to open one of their stores???